Economy EU orders Ireland to make Apple to pay up to 13 billion Euros

JDragon

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The EU Commission ruled Ireland broke state aid laws and therefore Apple owes taxes:

https://www.theguardian.com/business/2016/aug/30/apple-pay-back-taxes-eu-ruling-ireland-state-aid

This comes only a day after German's vice chancellor Sigmar Gabriel called free trade agreement TTIP negotiations with the US 'failed'.

http://www.independent.co.uk/news/w...s-eu-us-germany-vice-chancellor-a7213876.html

Previously, the US had tried to threaten the EU:

https://www.theguardian.com/technology/2016/aug/24/apple-taxes-european-commission
 
I wonder if Ireland will consider getting out of the EU once this hits them.

Maybe Apple thinks about relocating to the UK since its no longer a member.
 
Maybe Apple thinks about relocating to the UK since its no longer a member.

That would be an incredibly dumb thing to do. Why would they make such a decision without knowing whether the UK will still be part of the single market once they do leave?
 
I wonder if Ireland will consider getting out of the EU once this hits them.

Maybe Apple thinks about relocating to the UK since its no longer a member.
I think this is retaliation for the record fine of VW. This is turning ugly behind the scenes and they are getting ready to go after Facebook. Ireland is in real trouble over this news.
 
I think this is retaliation for the record fine of VW. This is turning ugly behind the scenes and they are getting ready to go after Facebook.
Makes sense.
But what really disturbs me is how a company like Apple go leaps and bounds to evade taxes, it's not like their profit margins are small or anything
 
That would be an incredibly dumb thing to do. Why would they make such a decision without knowing whether the UK will still be part of the single market once they do leave?

If the UK gives them a big tax break to relocate and they can thumb their nose at the EU.

The sell all around the EU if necessary.

No saying they would or even if it would be best for them, just wondering what type of "payback" they might be looking for.

Then what kind of "payback" the US might go after for this.
 
I think this is retaliation for the record fine of VW. This is turning ugly behind the scenes and they are getting ready to go after Facebook. Ireland is in real trouble over this news.

You could be right and this start some kind of mini trade war.
 
If the UK gives them a big tax break to relocate and they can thumb their nose at the EU.

The sell all around the EU if necessary.

No saying they would or even if it would be best for them, just wondering what type of "payback" they might be looking for.

Then what kind of "payback" the US might go after for this.


“Member states cannot give tax benefits to selected companies – this is illegal under EU state aid rules,” said Ms Vestager. “The commission’s investigation concluded that Ireland granted illegal tax benefits to Apple, which enabled it to pay substantially less tax than other businesses over many years. In fact, this selective treatment allowed Apple to pay an effective corporate tax rate of 1 per cent on its European profits in 2003, down to 0.005 per cent in 2014.”


Hard to imagine the UK giving them even lower tax rates even after accounting for the tax additional payment.

BTW i did not bother to check the numbers, but assume Apple had an EBIT of 50 billion in Europe im 2014. That would mean they paid 2.5 million in taxes.
 
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Makes sense.
But what really disturbs me is how a company like Apple go leaps and bounds to evade taxes, it's not like their profit margins are small or anything

Maximizing shareholder value.
 
Makes sense.
But what really disturbs me is how a company like Apple go leaps and bounds to evade taxes, it's not like their profit margins are small or anything
They could have gone after Apple and others a long time ago. The timing and the size of the penalty leads me to believe this is response to VW penalties. Wait till the US responds to this a number of responses on the table.
 
“Member states cannot give tax benefits to selected companies – this is illegal under EU state aid rules,” said Ms Vestager. “The commission’s investigation concluded that Ireland granted illegal tax benefits to Apple, which enabled it to pay substantially less tax than other businesses over many years. In fact, this selective treatment allowed Apple to pay an effective corporate tax rate of 1 per cent on its European profits in 2003, down to 0.005 per cent in 2014.”

Hard to imagine the UK giving them even lower tax rates even after accounting for the tax additional payment.

Since they are no longer a member state.

They could give them the same tax deal they had to relocate for a time then work out a slow raise to an expectable level.

They might get the better of the deal depending on how much they pulled in in wages and such.
 
Since they are no longer a member state.

They could give them the same tax deal they had to relocate for a time then work out a slow raise to an expectable level.

They might get the better of the deal depending on how much they pulled in in wages and such.

The UK is still a member of the EU and that will not change anytime soon.
 
They can pay up. I will never buy an apple product.
 
Didn't they just vote to get out?
Yes they did but the actual time the vote is enacted is 2019 could be later. They have to follow the agreements till that time.
 
Yes they did but the actual time the vote is enacted is 2019 could be later. They have to follow the agreements till that time.

OK

I thought the EU wanted them out as soon as possible, isn't that what the president of the EU said.
 
OK

I thought the EU wanted them out as soon as possible, isn't that what the president of the EU said.
Basically parties met with each other and negotiated a time line when the changes take effect. This only happened after the original rattling between EU president stated and some in England. It turns out both are worried about the economic impact so they pushed the time back. They even left open the possibility this could be delayed again.
 
Yeah, at that level I guess it's more political than anything else.

In a way I am happy to see the EU learn from the USA and flex some muscles for once.

Also, it's a good things when Murrca is reminded from time to time that these things usually go both ways.
 
Yeah, at that level I guess it's more political than anything else.

In a way I am happy to see the EU learn from the USA and flex some muscles for once.

Also, it's a good things when Murrca is reminded from time to time that these things usually go both ways.
Agree but will see how they react when the US closes Military bases in Northern Europe. Russia will be happy. Ireland is not happy companies are going to be running away. This is not going to end well for anyone.
 
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